By Kofi AHOVI
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has started its quarterly meeting to review the health of the national economy.
The committee usually considers developments within the economy and reviews them against the backdrop of the international economy to which Ghana’s economy has both direct and indirect connections.
It would look at the financial sector and trace the pattern of loans by the banks and also look at trends in inward remittances by embassies, Non Governmental Organizations (NGOs) and individuals into the country, among others.
The committee will also examine core inflation behaviour, domestic receipts and payments, as well as foreign receipts and payments.
The behaviour of world market prices of primary commodities, such as gold, cocoa and crude oil, is of immense importance to the economy, which exports mainly primary commodities but imports everything from capital goods to consumables.
The last time the committee met was in September, this year, after which it maintained the policy rate at 13.5%.
The policy rate is the rate at which commercial banks borrow from the central bank, and it also serves as a benchmark rate for the charges of banks on their lending, influencing it more on the upward trajectory than the downward.
This is because banks more easily adjust their interest rates upwards anytime there is an increase in the prime rate, than they will do when the rate is reduced.
According to a press release from the BoG, the MPC will hold a press conference this Friday, December 10, to announce its decision.
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has started its quarterly meeting to review the health of the national economy.
The committee usually considers developments within the economy and reviews them against the backdrop of the international economy to which Ghana’s economy has both direct and indirect connections.
It would look at the financial sector and trace the pattern of loans by the banks and also look at trends in inward remittances by embassies, Non Governmental Organizations (NGOs) and individuals into the country, among others.
The committee will also examine core inflation behaviour, domestic receipts and payments, as well as foreign receipts and payments.
The behaviour of world market prices of primary commodities, such as gold, cocoa and crude oil, is of immense importance to the economy, which exports mainly primary commodities but imports everything from capital goods to consumables.
The last time the committee met was in September, this year, after which it maintained the policy rate at 13.5%.
The policy rate is the rate at which commercial banks borrow from the central bank, and it also serves as a benchmark rate for the charges of banks on their lending, influencing it more on the upward trajectory than the downward.
This is because banks more easily adjust their interest rates upwards anytime there is an increase in the prime rate, than they will do when the rate is reduced.
According to a press release from the BoG, the MPC will hold a press conference this Friday, December 10, to announce its decision.
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